City Announces Third Round of Small Business Assistance Fund Loan Program
NEW ORLEANS — The Mayor’s Office of Economic Development launched the third round of the Small Business Assistance Fund (SBAF) loan program, a financing opportunity created by Mayor Landrieu in partnership with NewCorp, Inc. to support the growth of new and existing small businesses. The application period will be on a rolling basis. SBAF applications are currently available online at www.newcorpinc.com.
“We are proud to have another opportunity to support the growth of New Orleans small businesses. Our local businesses create good-paying jobs and access to economic prosperity,” said Mayor Landrieu. "The SBAF program is about creating access to capital for these small businesses."
The SBAF is partially funded by the City of New Orleans Economic Development Fund, a partnership between the City and the NewCorp, Inc., which is the local Community Development Financial Institution selected to administer the program.
In the third round, the program will provide eligible small businesses with 8 percent interest rate loans ranging from $10,000 to $50,000 for operating capital and equipment purchases. The maximum term of the loan is up to 84 months and will depend on the financing needs of the borrower.
To be eligible, participants must meet the following requirements:
Domiciled in Orleans Parish;
Demonstrate that it has been unable to access capital from traditional lending sources;
Demonstrate financial and economic viability to spur growth and employ New Orleans residents; and
Provide living-wage employment and ownership opportunities to low-to-moderate income communities.
In the first two rounds of the SBAF loan program, twenty-four local businesses were approved for loans totaling $1,436,800. The loans will be used for operating capital, equipment purchases and expansion plans, and are expected to generate 89 new jobs.
Vaugh Fauria, President and Executive Director of New Corp said, "NewCorp is thrilled that the first two rounds of the SBAF program were a success in lending funds to the targeted recipients. We are very excited to open a third round of funding in order to allow our entrepreneurial community another opportunity to access the resources and financing that are not ordinarily available to many. This innovative program, established through a partnership with the City of New Orleans, will continue to provide small businesses access to services that will create jobs and enhance our communities."
The City and NewCorp, Inc. will host program information sessions to provide details on the program and walk business owners through the application process. Prospective SBAF loan applicants should plan to attend one of the sessions listed below or sessions that will be scheduled by NewCorp, Inc.
Aimee Quirk, Senior Advisor to the Mayor for Economic Development, said, “We are very excited to again offer this resource to our local businesses. Our local businesses are tremendous and essential partners in the rebuilding of our city and any tools we can provide them to ensure their success means a win for the entire city.”
Information sessions will take place at 2:00 p.m. on the following dates: Nov. 11,13,18, 20, 24 and 25, at NewCorp, Inc. at 2924 St. Bernard Ave. in New Orleans.
Those interested in attending a session should RSVP at firstname.lastname@example.org or call (504) 208-1700. Prospective applicants can also schedule one-on-one appointments Monday-Friday between 9:00 a.m. and 3:00 p.m. during the application period. Applications are available online at www.newcorpinc.com.